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Home My WebLink AboutCOM 0184.036 1996-1998 o9. 9.d: 9-r 11:9o FAJ 808 885 6915 ~fALNA LANI RST. CoYH Res R Dev ~ oo@ • , s ~ i J ~ 'Y - - ~~~y „ - s - March 24, 1997 - • • ~ `r TO: Hawaii County Council COMMITTEE ON FINANCE Aaron Chung, Chair - ~ John Ray, Vice-Chair Bobby Jean Leithead-Todd John Santangelo AI Smith - Curtis Tyler r:,e: Dominic Yagong James Y. Arakaki 'S' v'.. - FROM: John DeFrie K~.. _ Consultant t auna Lani Resort, Inc. and The Senior Skins Game =`r~?r RE: Testimony of support for County funding in the amount of $150,000 for the ,y_:r 1998 Senior Skins Game, -f,.. Aloha Mr. Chung, Mr. Ray and Committee Members, - The purpose of this testimony is to request full support fora 5150,000 appropriation for the - 1998 Senior Skins Game and to provide additional insight that will assist you in making an ,1"4~ informed decision. - ~r: This testimony will focus on the following five areas: 1. Overview of the 1997 Senior Skins Game held on January 25 and 26 ' II. Cost Effectiveness of the County's Investment in the 1997 Senior Skins Game " III. Value-Added Elements of the Event ~'=r:=i'. iL• IV. Domestic and Foreign Resort Destinations Ci,~.lpeting for this Event V. Summary and Overall Economic Impact MAUNA lANI RESORT " ~"r''; P.O. BOX 4'R59 - KOHwLn COAST • 'ISLAND OF HA WAp y67;y.~959 TELEPHONE: (89P1 NISS•4G77 . FAX: (&1N) gy5.yg75/O~ ~ / _ t~LeL. 2o11e5E rav r?ar.. NAR 2 418 O:S: :;:g; 11: J1 FAx 808 885 875 31AUNA L9NI RST. CoYH Res S Dec ~ooJ I. OVERVIEW OF THE 1997 SENIOR SKINS GAME HELD ON JANUARY ZS AND 26 A. Site Fee (Cost of the Contract) $800,D00 - Partners: Mauna Lani Resort Inc. $450,000 Mauna Lani Bay Hotel The Orchid at Mauna Lani State of Hawaii $150,000 County of Hawaii $150,000 HVB-Big Island Chapter $25,000 Big Island Group (BIG) $25,000 - The 1998 Contract will cost 5850,OOD an increase of $50,000 B. Soft Costs (Staging / On-Site production) $350,000 - Partners: Mauna Lani Resort, Inc. Mauna Lani Bay Hotel The Orchid at Mauna Lani - Approximately $43,000 is recovered through the sale of tickets. C. National Telecast on ABC and Nielsen Ratings - Saturday 2.5 hours; reached 2.92 million homes in America - 3.0 rating - Sunday 2.5 hours; reached 2.92 million homes in America - 3.0 rating 5.84 MILLION HOMES IN AMERICA (estimate) - In 1997, The Senior Skins Game is forecasted to be in the "Top 2D" of America's most watched golf events; out of more than 65 events televised on the four major networks. II. COST EFFECTIVENESS OF THE COUNTY'S INVESTMENT IN THE 1997 SENIOR SKINS GAME A. Site Fee Divided by the Total Number of Homes Reached by National- Telecast - Site Fee $800,000 Divided by Total Homes Reached 5.84 million Equals $.14 (13.6 cents) - It cost 14 cents to reach each (viewer's) r,ome in America - The County of Hawaii subsidized 18.75% of the total site fee or 2.5 cents-per-home reached in America. O:f: ,~,a-97 11:01 FA.I' 903 885 6975 11dLM1A L.ArI RST. CoPH Res & Dev 4~~03 B. Cost of National Adv®rtising on The Senior Skins Game - $60,000 per 30-second scot or Sz,000 PER SECOND. - County's investment of 5150,000 could have purchased 1 minute and 15 seconds of advertising time (cost of producing the ad not included). - Instead, the County's investment enabled 5 hours of national exposure for the Island. C. Return on Investment - The County achieved a major return on investment on the national coverage alone. - Remember, in 1997, the County of Hawaii contributed an estimated 2.5 cents per home, to reach 5.84 million homes in America. - International Coverage (television and print media impressions) significantly compounds the County's return on investment. III. VALUE-ADDED ELEMENTS OF THE EVENT A. Hawaii's Climate and Natural Environment - This telecast is a showcase of mountain views, ocean views, flora, fauna, wildlife and the island's topographical characteristics. B. People of the Island of Hawaii - Eight years of television production and staging experience enables the employees of Mauna Lani Resort and a group of community volunteers to meet the challenges of presenting Hawaii to a global audience. C. World-Class Spokespersons for Hawaii - Jack Nicklaus, Lee Trevino, Hale Irwin and Raymond Floyd are living legends in golf and international businessmen who radiate an affinity for Hawaii. Also, the television comr?ontators, Vin Scully and Mark Rolfing are knowledgeable and ar~~culate experts of the game and superb promoters of HaH•aii; as a visitor destination. 01: ~J: g7 11:92 FAX 808 885 6975 I[AUNA LANI RST. CoPH Res R Deg- ~ 005 D. National Advertisers of the Telecast - This collection of national advertisers is impressive and validates this event as a viable marketing tool. Each of these advertisers is targeting customers /viewers from market segments that are essential to our Visitor Industry such as, FITS, Corporate 8 Association l~ieetings, and Incentives, as well as future Conventions. Corporate Golf and Sporting Goods Chrysler Callaway Paine Webber Spalding Andersen Consulting Wilson AT & T Titleist State Farm Visa Gold E. Worldwide Distribution of the 1997 Telecast - Refer to Exhibit A for a complete listing. IV. DOMESTIC AND FOREIGN RESORT DESTINA7lONS COMPETING FOR THIS EVENT. A. An event of this magnitude is fair game on the open market and a favorite take-over target by Hawaii's global competition. Destinations such as: Orlando, Florida; Las Vegas, Nevada; Los Cabos, Mexico; Jamaica; and the Dominican Republic (to name a few) are anxious to secure this event and capable of immediately financing multi-year television contracts. V. SUMMARY The Senior Skin Game is: * Acost-effective marketing tool to promote the Island of Hawaii as a visitor destination. A challenge and teaming opportunity for the Resort's employees and community volunteers who play vital roles in presenting Hawaii to the world, on television. * Apublic-private partnership that is working efficiently. * A wise 'vestment of "public dollars" that result in an -•~erall economic impact ..f $14,473,S~fi? SO (Refer to E<hibit B) Thank you for your time and consideration on this matter. OJ-_-1.97 11: FAQ s08 985 6975 3fALINA LANI RST. CoY6 Res & Dee 0008 ~ ~ , - i - EXHIBTf A Afghanistan ~ 1 "Algeria ~ ' ~ ~ 'Peru `Anguila 'Philippines `Antigua Poland `Argentina • Qatar y Atmisbtraha ' ~ `Republic of Palau Rota 'Bahamas 'Saudi Arabia 'Bahrain Seychelles Bangladesh * Singapore 'Barbados • Somalia 'Bermuda SENIOR SKINS GAME South Arica Bhutan WORLDWIDE DISTRIBUTION OF TELECAST South Korea 'Bolivia _ Spain • Bonaue Eire 'Lebanon Sri Lanka Bophuthatswana * El Salvador 'Libya "St. Kitts `Brazil 'French Guyana Macau ' St. Lucia 'Brunei Germany 'Malaysia • St. Martin Burma "Guatemala 'Mauritania 'Sudan Cambodia ° Guyana "Mexico 'Surname `Canada 'Guam 'Micronesia 'Syria •Cayman Islands 'Haiti Mongolia • Taiwan CIS (Former USSR) 'Honduras 'Montserrat 'Thailand * Chad • Hong Kong 'Morocco • Tortola "Chile 'India Nepal Trinidad & Tobago ' China "Indonesia Netherlands 'Tunisia "Colombia 'Iran 'Nevis Turkey 'Costa Rica "Iraq "New Caledonia 'United Arab Emirates 'Cuba Israel "New Zealand United Kingdom - •Curacao Italy North Korea `United States Cyprus "Japan Oman 'Uruguay - . • Djibouti "Jordan Pakistan 'Venezuela - ' Dominica Kenya • Palestine Vietnam 'Dominican Republic 'Korea "Panama 'Yemen ' Ecuador 'Kuwait * Papua New Guinea Zimbabwe 'Egypt Laos "Paraguay `LONG FORM PROGRAMMING wILL HE BROADCAST IN THESE 81 TERRITORIES. THE REMAIMNG 32 ' TERP'TORIES WILL RECEIVE HIGHLIGHTS. Source: International Management Group, Dept. of International Syndication. New York, NY MAVPIA LA~II RESORT CO. BOX 495v•KOHALA COAST ISLAND OF HAWAII 96743-}95g TF.I,FPHONE: ltlO81B&r+6ti77 FAX:(&lp)pR5-h375 o J: ~3. 97 11:9 FAA 808 885 8975 MAUNA L9A`S RST. CoPH Res & Dev t~ooi • ~ - '.;v - r E :HIBIT B _y • +J 4 ~'J i ~ ~ 7 ECONOMIC IMPACT ANALYSIS Event-. THE 1997 SENIOR SKIl~TS GA141E _ Date of Event January 25 - 26, 1997 Number oPOut-0f State Participants: 395 Number of Far East Partitipants: 10 - Average Length of Stay: 5 days on the Big Island - Bnsiaess Ezpeaditure for Event: 55,840,000 Calenlations: - i . Total sales generated by visitor expenditures x 2 (output multiplier)' _ - Vnitor Ezpmditnres: =number of visitors x dollars spent per day x length of stay U.S. Maialand = 395 x 5I33.79+ x 5 days r-- _ Far East = 10 x 5340.88s x 5 days Y~' , . S 17,0/4.00 - Tote! Said Generated ~^r .J~,- by Vnitor Ezasenditaresq= ,(5264,235.?S + 517,044.00) x 2+ = SZ81,279.25 x 2' ~;~t--, 2. Total sales generated in business arpmdiiures =production spmdiag x production spending _ mtiltipfier (2.262)'. Ezpcoses. ~,r (Sire Fm, Advettimng & [Snllataal, TV ProdncdOn, Operations, Fn~'hortS~'^Jtreerixwrm Admin/Sales) = 56,150,000 - = 56,150,000 x 2.262' _ - S13y11,300 - 3, Total sales generated by visitor + total sales generated in business expenditures = 5562,558.50 + 513,911,300 _ 514,473,E58_SD 'r. . OVERALL ECONOI!*EC IIMIPACT OF 1997 SENIOR S)~iS GAME = Sld, S73~S8~*0 - • Mnltrli~-s and/or li®oes pewided d9 the Research and F.oommic Analysis D:-isiaa of tLe state erHawaii. MAUNA LA31i1 RESORT - P.O. FIO%4959•KOHw~.A COAST ISLAND OF Hq Wgll %7sy{95y TELEPHONE: I80li)Ntl5-(NA FAX IB(Iftl &i5-b31$ 09;_4;97 11:96 F9S 808 885 8075 S1ALm.4 LANI RST. CoYH Res 8 Dec X008 ESTIMATED VISTTOR ATTENDANCE U.S. MAINLAND VISTTORS: PGA SENIOR TOUR professionals/spouses/families = 75 Amateur participants/spouses/families - 100 PGA SENIOR TOUR officials/spouses a 10 Television talent and production crews ~ 120 Caddies/guests = 10 Media = 40 Sponsors = 40 Total U.S. Mainland Visitors = 395 FAR EAST VISITORS: Sponsors(patticipatns/spouses = l0 TOTAL ESTIMATED VISTTOR ATTENDANCE =405 The above estimated participant information does not include event spectators.